Accused Tricolor Fraudster Daniel Chu Sells Dallas Homes

An alleged fraudster sold two Highland Park homes involved in a federal case.

Daniel Chu, the founder and former CEO of Irving, Texas-based auto retailer Tricolor, listed the two Dallas homes last year amid accusations of malfeasance, eventually selling the first in December and the second last week.

Following his arrest in December, Chu faced scrutiny for his real estate portfolio, which at its height included properties in Miami Beach and Aspen as well as Highland Park, one of the most exclusive neighborhoods in Texas.

The U.S. Department of Justice is pursuing fraud charges against Chu, accusing him of “orchestrating a years-long financial crimes enterprise” against banks and private creditors. He was arrested in Florida after suspicion mounted among his lenders, according to a DOJ press release.

Tricolor had sold and provided subprime financing for used cars since 2007. The company filed for Chapter 7 bankruptcy protection in September, according to the indictment.

Chu’s total real estate portfolio was worth $38 million before he began selling off property, according to a lawsuit filed in December by a court-appointed Chapter 7 bankruptcy trustee for Tricolor Holdings.

Chu sold his first Highland Park home, a 3,520-square-foot house at 4544 Westway Avenue, the same day that the lawsuit was filed. He bought it in 2024 for an undisclosed price. It was listed for $2.1 million when it sold to Gilbert Aranza in December, according to Zillow and public records. The sale price was not disclosed. Chu’s daughter, Compass agent Katie Chu, had the listing, according to the lawsuit and Zillow.

The sale of the second Dallas home was more complicated.

Chu owned the home at 4208 Beverly Drive that sat on the market for a year, starting last February. Built in 2020, the three-bedroom, five-bathroom home spans 6,500 square feet over two stories on a 0.3-acre lot, according to county records. An attached garage adds 840 square feet, and the backyard has a pool.

The home sold on Thursday, according to public records. The buyer is the Loop MM Trust, and the trustee is Joel Beck, the deed shows.

The sale price isn’t disclosed. County records show that the home had been under a lis pendens notice, which warns potential buyers of litigation involving the property, tied to the bankruptcy trustee’s lawsuit against Chu.

The court lifted the lis pendens after the home went under contract. Under a court order, Chu was permitted to keep 15 percent of the proceeds and remit the remainder to an account in the name of Tricolor Holdings administered by the Chapter 7 bankruptcy trustee, filings show.

Both homes are in the Park Cities, one of the most expensive residential areas in Texas. Formed by the townships of Highland Park and University Park, the Park Cities often have the most expensive homes in the state, including last year’s chart-topping $30.5 million sale of a mansion at 6601 Hunters Glen Road, less than two miles away from Chu’s former home.

It’s not clear whether the home on Beverly Drive traded off-market. Chu initially listed the property on the Multiple Listing Service for $11 million, eventually dropping the price to $9 million in November, Redfin shows. The listing was removed on Feb. 26 without entering the pending stage.

However, there’s no listing paragraph for the home on Redfin, Zillow, Realtor.com or the Houston Association of Realtors. Zillow and HAR still show the property as a vacant parcel.